About 1% of Shpadoinkle’s profits come from supplying our own fuel to system-owned rentals that we then rent ourselves, resulting in what is effectively discounted renting.
For the month of March we have already made v$3.3million in flight revenue, and it is estimated that refueling wet rentals that we fly ourselves provided about v$33,000 in savings. For reference, v$33000 will supply a single 3 lot FBO for 73 days, however it requires the sale of approximately 38,000 Gallons of fuel costing approximately v$130,000 wholesale, which in order to achieve such consumption levels legitimately would require either good locations at major airports, or an enormous scale of operations such as what Shpadoinkle has.
In March, Shpadoinkle spent approximately v$500,000 on rental fees, meaning that providing our own fuel resulted in rental savings of about 5%, compared to renting wet without being the fuel supplier.
Again, note that the v$33000 were accumulated through a massive amount of flights likely totalling more than 300 flights (the new edition of FSEreporter will tell, unless Shpadoinkle or licecolon somehow do not make it onto the top 10 list), meaning that on average, only v$100 was saved per flight as a result of FBO ownership totalling v$300k per month in supply costs alone.
In addition, supplying fuel to the system is best case scenario, as the system will always buy at a fixed price (currently $4.19 for Jet A). You will have to undercut the system to sell to players who are few and far between, and unless you are the only provider in miles, players can simply choose to refuse if they consider your prices too high.
Except in specific airports and locales, fuel sales do not a profitable FBO ownership make, but they can ease the cost burden when operating rented aircraft.